National Western Life Group, Inc. Announces 2015 Fourth Quarter and Full Year Earnings

Mar 10, 2016, 12:00 ET from National Western Life Group, Inc.

AUSTIN, Texas, March 10, 2016 /PRNewswire/ -- Ross R. Moody, President and Interim Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today fourth quarter 2015 consolidated net earnings of $32.0 million, or $9.04 per diluted Class A common share, compared with consolidated net earnings of $28.1 million, or $7.94 per diluted Class A common share, for the fourth quarter of 2014.  For the year ended December 31, 2015, the Company (formerly National Western Life Insurance Company and Subsidiaries) reported consolidated net earnings of $98.4 million, or $27.82 per diluted Class A common share, compared with $105.6 million, or $29.85 per diluted Class A common share a year ago.  The Company's book value per share increased to $443.32 as of December 31, 2015 from $428.01 at December 31, 2014.

Effective October 1, 2015, National Western Life Group, Inc. (NWLGI) was established as the parent organization of National Western Life Insurance Company (National Western) under a previously announced holding company reorganization. As a result of the reorganization, NWLGI replaced National Western as the publicly held corporation. NWLGI continues to conduct all of the operations previously conducted by National Western and its subsidiaries and the consolidated assets, liabilities, operations, and financial condition of NWLGI at the date of reorganization were the same as those of National Western immediately prior to the reorganization.

The Company reported earnings from operations, excluding net realized gains and losses on investments, of $31.2 million for the quarter ended December 31, 2015, or $8.83 per diluted Class A common share, an increase from $25.0 million, or $7.05 per diluted Class A common share, in the same period for 2014. Earnings from operations for the full year amounted to $93.7 million, or $26.49 per diluted Class A common share, compared to $98.0 million, or $27.72 per diluted Class A common share in 2014. Mr. Moody commented on the earnings results saying, "Our operating results for the year were achieved in a very challenging environment. Other insurers are releasing results with sizable declines in profitability from the prior year and are attributing the decline in their earnings to volatility in equity markets, a continuing low interest rate environment as well as other operational and regulatory headwinds. Given that backdrop, we view 2015 as another successful year in the Company's history." Mr. Moody further noted that the Company was able to increase its operating revenues (excluding investment and index option gains and losses) to $644.3 million from $628.6 million. "Top line growth in this industry is becoming a more difficult measure to achieve and our record of surpassing prior period results year after year is indicative of our long-term approach to managing the business."

NWLGI is the parent organization of National Western. Founded in 1956, National Western is a stock life insurance company offering a broad portfolio of individual universal life, whole life and term insurance plans, annuity products, and investment contracts meeting the financial needs of its customers in 49 states as well as residents of various international countries. National Western has 262 employees and approximately 23,600 contracted independent agents, brokers, and consultants. At December 31, 2015, the Company maintained total consolidated assets of $11.6 billion, stockholders' equity of $1.6 billion, and life insurance in force of $22.0 billion.

Caution Regarding Forward-Looking Statements:

This press release contains statements which are or may be viewed as forward-looking within the meaning of The Private Securities Litigation Reform Act of 2005. Forward-looking statements relate to future operations, strategies, financial results or other developments, and are subject to assumptions, risks, and uncertainties. Factors that may cause actual results to differ materially from those contemplated in these forward-looking statements can be found in the Company's Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made and the Company undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the Company will not materially and adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

 

Summary of Consolidated Operating Results (Unaudited)

(In thousands except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Revenues:

Revenues, excluding investment and index option gains (losses)

171,289

160,119

644,337

628,559

Realized and unrealized gains (losses) on index options

8,134

19,338

(61,750)

68,616

Realized gains on investments

1,160

4,858

7,209

11,605

Total revenues

180,583

184,315

589,796

708,780

Earnings:

Earnings from operations

31,237

24,955

93,710

98,045

Net realized gains on investments

754

3,158

4,686

7,543

Net earnings

31,991

28,113

98,396

105,588

Net earnings attributable to Class A shares

31,087

27,318

95,614

102,602

Basic Earnings Per Class A Share:

Earnings from operations

8.84

7.06

26.50

27.74

Net realized gains on investments

0.21

0.89

1.33

2.13

Net earnings

9.05

7.95

27.83

29.87

Basic Weighted Average Class A Shares

3,436

3,436

3,436

3,436

Diluted Earnings Per Class A Share:

Earnings from operations

8.83

7.05

26.49

27.72

Net realized gains on investments

0.21

0.89

1.33

2.13

Net earnings

9.04

7.94

27.82

29.85

Diluted Weighted Average Class A Shares

3,438

3,438

3,437

3,437

 

Investor Relations Contact: Brian M. Pribyl - Senior Vice President, Chief Financial Officer and Treasurer (512) 836-1010 bpribyl@nationalwesternlife.com www.nationalwesternlife.com

 

SOURCE National Western Life Group, Inc.



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